2021 Full Year Results

Jay DossetterNews

Click here to download full announcement

3 March 2022       

Entain plc
(“Entain” or the “Group”)

Strong 2021 performance demonstrating strength of our diversified growth model and global platform

Entain plc (LSE: ENT), the global sports betting, gaming and interactive entertainment Group, is pleased to announce its results for the year ended 31 December 2021. The strong performance reflects the capabilities and diversification provided by the Group’s industry leading platform in driving growth.

Operational Highlights:

  • Strong growth across the Group with NGR up 7% (8%cc) in the year
    • Online NGR up 12% (13%cc) in 2021, the ninth consecutive year of double-digit online growth
    • Growth in actives of 25% in the year as we expand our appeal to a broader audience
    • Good performance in Retail as year end volumes returned to over 90% of pre-Covid levels
  • BetMGM continues to go from strength to strength as a leader in the fast growing US market
    • Established as the number two operator for sports betting and iGaming with a 23% market share in the fourth quarter across the markets in which it operates
    • Market leader in iGaming with 29% market share in Q4 2021 in the markets in which it operates
    • Live in 21 markets, reaching over 37% of the U.S. adult population, with launches in Illinois and Ontario planned for the coming months
    • Upgraded expectations for net revenue from operations of over $1.3bn in 2022 and anticipates reaching positive EBITDA in 2023
    • Continued execution of growth strategy into new markets
      • Completed acquisitions of Bet.pt in Portugal and Enlabs AB in the Baltics as well as UNIKRN to drive access to the esports skill based wagering market
      • Further growth secured since the start of the new financial year with three transactions, including the acquisition of Avid Gaming to drive growth across Canada
      • Launch of the Ennovate hub to explore use of innovative technologies, products and services to further enhance the customer experience
    • Further progress under the Group’s Sustainability Charter delivering industry leading ESG
      • ARCTM (“Advanced Responsibility & Care”) programme continues to progress well, with real-time customer interaction trials underway, along with initial stages of international rollout
      • A number of initiatives launched across the year, including a commitment to net zero carbon emissions by 2035, and EnTrain to benefit the lives of 1m people through access to technology
      • Named EGR Operator of the Year, as well as Socially Responsible Operator of the Year at the SBC Awards North America
      • Entain continues to be the only online-led gaming company included in the Dow Jones Sustainability Indices, in addition to its continued inclusion in the FTSE4Good index

    Financial Highlights:

    • Strong financial performance; Group Underlying EBITDA1,4 up +5% at £881.7m at the upper end of guidance
      • Online Underlying EBITDA1,4 up +12% at £899.0m reflecting the double digit growth in all key markets excluding Germany and the Netherlands (excluding Germany and the Netherlands online NGR was +21cc%)
      • Total Retail NGR -7%cc (-3%cc9) and Underlying EBITDA1,4 of £66.9m was £31.4m behind the prior year
      • Total Group Revenue of £3,830.0m up +8% (+9%cc) in 2021
      • Including 50% share of BetMGM joint venture, Group FY21 NGR was up 14% (15% cc)
    • BetMGM (the Group’s joint venture in the US) continues to perform strongly, with FY21 NGR of approximately $850m7, up nearly 5 times versus the prior year
    • To repay £44m received under the Coronavirus Job Retention Scheme (“furlough scheme”) in FY21
    • Group profit after tax1 was £275.6m, up 142% compared to 2020
    • Underlying free cashflow8, before the investment into BetMGM and acquisitions/disposals, of £537.3m
    • Year end net debt of £2,086.4m with leverage at 2.4x ensuring balance sheet flexibility to support our growth strategy

    Jette Nygaard-Andersen, CEO of Entain, commented:

    “Our Full Year results demonstrate yet again that Entain is a business with growth built into its business model. Our strong performance is underpinned by the Entain platform which encompasses the compelling combination of our proprietary technology, our outstanding people around the world, and our industry-leading operational capabilities.  It is this unique platform that enables us to deliver an ever-improving customer experience, to embrace emerging consumer and technological trends, and to grow into new markets and product areas.

    All of our major markets have performed well.  In particular, BetMGM in the US has delivered a five times increase in net gaming revenue versus the previous year, and is ready to challenge for the number one position across the markets in which it operates.  Elsewhere, our retail business has recovered strongly and volumes have now returned to 90% of pre-Covid levels as restrictions have eased and customers have returned to our shops.

    As ever, I would like to thank each and every one of our colleagues for their dedication, hard work and professionalism in helping to achieve these results. Given the quality of our people, the ongoing broad-based growth of the business, its continuing momentum, and the investments that we are making in innovation to support our future expansion, we remain confident in our financial performance for FY22 and beyond.”

    Group

    Reported1,2

    Year ended 31 December

    2021

    2020

    Change

    CC3

    £m

    £m

    %

    %

    Net gaming revenue (NGR)

    3,886.3

    3,628.5

    7%

    8%

    Revenue

    3,830.0

    3,561.6

    8%

    9%

    Gross profit

    2,435.8

    2,308.6

    6%

    Underlying EBITDAR4

    898.8

    862.1

    4%

    Underlying EBITDA4

    881.7

    843.1

    5%

    Underlying operating profit5

    484.1

    529.5

    (9%)

    Underlying profit before tax5

    527.3

    350.6

    Profit after tax

    275.6

    113.8

    Diluted EPS (p)

    44.7

    15.6

    Continuing adjusted diluted EPS6 (p)

    53.8

    62.8

    Continuing adjusted diluted EPS excl US6 (p)

    81.1

    73.1

    Dividend per share (p)

    Dividend
    The Board has not proposed a final dividend for FY2021.  Recognising the importance of dividends to shareholders alongside our capital allocation priorities in supporting the Group’s growth strategy, the Board continue to keep the recommencement of the payment of dividends under on-going review.

    Outlook
    The Group has delivered strong results in FY2021, reflecting both the diversified nature of our business model, the strength of our platform and the quality of our people.  As we start 2022 we see retail heading towards pre-Covid levels and online performing inline with expectations against tough prior year comparables.  As global economies steadily emerge from the impact of the pandemic, we continue to provide our customers with great products and experiences.  As a result, we remain confident in our financial performance for 2022 as well as our long-term prospects.

    Notes

    • 2021 and 2020 reported results are audited and relate to continuing operations
    • Reported results are provided on a post IFRS 16 implementation basis
    • Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2021 exchange rates
    • EBITDAR is defined as earnings before interest, tax, depreciation and amortisation, rent and associated costs, share based payments and share of JV income. EBITDA is defined as EBITDAR after charging rent and associated costs. Both EBITDAR and EBITDA are stated pre separately disclosed items
    • Stated pre separately disclosed items
    • Adjusted for the impact of separately disclosed items, foreign exchange movements on financial indebtedness and losses/gains on derivative financial instruments (see note 10 in the financial statements. EPS is also disclosed excluding BetMGM as this gives a better view of the EPS attributable to the Entain trading businesses)
    • BetMGM revenues comprise of sports (Online and Retail) and iGaming revenues
    • Underlying free cashflow is EBITDA less working capital, capital expenditure, finance lease, corporate taxes and before the investment in BetMGM and acquisitions/disposals
    • Retail numbers are quoted on a LFL basis. During 2021 there was an average of 4,540 shops in the estate, compared to an average of 4,727 in the same period last year

    Click here to download full announcement

    Enquiries:

    Investor Relations – Entain plc
    David Lloyd-Seed, Chief IR & Communications Officer
    Davina Hobbs, Head of Investor Relations
    Callum Sims, IR Manager

    investors@entaingroup.com
    david.lloyd-seed@entaingroup.com
    davina.hobbs@entaingroup.com
    callum.sims@entaingroup.com

    Media – Entain plc
    Lisa Attenborough, Head of Corporate Communications
    Jay Dossetter, Head of ESG and Press Office
    Jodie Hitch, PR Manager

    media@entaingroup.com
    lisa.attenborough@entaingroup.com
    jay.dossetter@entaingroup.com
    Jodie.hitch@entaingroup.com

    Powerscourt
    Rob Greening/Nick Hayns/Sam Austrums

    Tel: +44 (0) 20 7250 1446
    entain@powerscourt-group.com

    Presentation and webcast
    The Full Year 2021 Results presentation for analysts and investors will be held today, Thursday 3rd March at 9:00am GMT.

    Participants may join via webcast or by conference call dial in, approximately 15 minutes ahead of the event.

    Live webcast link:
    https://brrmedia.news/ENT_FY21

    To participate in the Q&A, please also connect via the conference call dial in details:

    UK: +44 (0) 330 336 9601
    US: +1 646 828 8073
    Access Code: 8740864

    The presentation slides will be available on our website shortly before the event:
    https://entaingroup.com/investor-relations/results-centre/

    A replay of the presentation and transcript will be available on our website:
    https://entaingroup.com/investor-relations/results-centre/

    Upcoming dates:
    Q1 Trading Update: 7 April 2022
    BetMGM CMD: May 2022
    Q2 Trading Update:  7 July 2022
    2022 Interim results: 11 August 2022 

    Click here to download full announcement

    Forward-looking statements
    This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst other things, results of our operations, financial condition, liquidity, prospects, growth, strategies and the business we operate. These forward-looking statements include all matters that are not historical facts. By their nature, these statements involve risks and uncertainties since future events and circumstances can cause results and developments to differ materially from those anticipated. Any such forward-looking statements reflect knowledge and information available at the date of preparation of this document. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation (596/2014), the Listing Rules, the Disclosure Guidance and Transparency Rules and the Prospectus Rules), the Company undertakes no obligation to update or revise any such forward-looking statements. Nothing in this document should be construed as a profit forecast. The Company and its directors accept no liability to third parties in respect of this document save as would arise under English law.

    About Entain plc
    Entain plc (LSE: ENT) is a FTSE100 company and is one of the world’s largest sports-betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports Brands include bwin, Bet.pt, Coral, Crystalbet, Eurobet, Ladbrokes, Neds and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis.

    The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US. Entain provides the technology and capabilities which power BetMGM as well as exclusive games and products, specially developed at its in-house gaming studios. The Group is tax resident in the UK with operations in a total of 31 regulated or regulating territories. Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AA rated by MSCI. The Group has set a science-based target, committing to be carbon net zero by 2035 and through the Entain Foundation supports a variety of initiatives, focusing on safer gambling, grassroots sport, diversity in technology and community projects. For more information see the Group’s website: www.entaingroup.com

     

    LEI: 213800GNI3K45LQR8L28